please explain

18. Baab Cor inventory bala Corporation is a manufacturing firm that uses loborder costing The Commons balances were as follows at the beginning and end of the year Raw materials $ Work in process $ Finished Goods $ atthew Minor Beginning Balance Ending Balance 14,000 $ 22,000 27,000 $ 9,000 62,000 $ 77,000 The company applies overhead to jobs using a predetermined overhe At the beginning of the year, the company estimated that it would work 33,000 m incur $231,000 in manufacturing overhead cost. The following 1. Raw materials were purchased. $315,000 2. Raw materials were requisitioned for use in production, $26,000 indirect). using a predetermined overhead rate based on machine-hours acturing overhead costated that it would work 33,000 machi mashine ho ad cost. The following transactions were recorded for the year The following employee costs were incurred: direct lab administrative salaries, $172,000. se in production, $307,000 ($281.000 direct and yee costs were incurred: direct labor, $377,000; indirect labor, 596,000; and 3. Selling costs, $147,000 4. Factory utility costs, $10,000 5. Depreciation for the year was $127.000 of which $120.000 is related to factory operations and $7,000 is related to selling general, and administrative activities Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34.000 machine-hours. Sales for the year totaled $1,253,000 Required: a. Prepare a schedule of cost of goods manufactured. b. Was the overhead underapplied or overapplied? By how much? c. Make a Journal Entry to close the MOH account. c. Prepare an income statement for the year. 40 pt